The coming financial crisis

[PoopyfaceMcGee]

so a bunch of irresponsible people and companies basically hold the rest of us ransom.

Doesn't your whole theory of government revolve around the majority of tax-paying citizens paying expenses for the people that can't foot the bill themselves, whether by fault of their own or not?

[ice grillin you]

if a scam artist rips someone off we dont blame the victim so why blame the buyers here...these brokers and shady mortgage companies often seek out and look for vulnerable people to get money from...do people need to be more vigilant and educate themselves better sure but in the end the responsible party is the lender

[Diomedes]

so a bunch of irresponsible people and companies basically hold the rest of us ransom.

Doesn't your whole theory of government revolve around the majority of tax-paying citizens paying expenses for the people that can't foot the bill themselves, whether by fault of their own or not?

Yeah, and as I said, if you'd farging read you moron, I suppose it's good that the government is stepping in.  But I'm unfargingpleased with the whole thing.

[Seabiscuit36]

Dio, its not the big guys who did this, it was the Mortgage brokers that popped up overnight that were predatory lending to ridiculous levels

Fair enough..but who in turn is buying those mortages?  The big boys.  They don't get off the hook simply by being one step removed; without their patronage, the whole thing collapses.  The are accomplices to the crime as much as the getaway driver.

I'd kinda like to see them all eat their shorts on this, but then everyone suffers even worse.  It's a real bitch of a system.

It definitely was.  The big boys werent too smart in looking at account level details of accounts they were purchasing, just what the overall cost was to them and what the bottom line would look like. 

Countrywide was the worst of the big boys.  Heck my company and a few other large banks tried to help them out and its not going so well.  Screw everyone

[ice grillin you]

if you'd farging read you moron


lol

[Seabiscuit36]

What i don't understand is when i obtained my first mortgage, i was a first time buyer and had to take a course on mortgages just to get approval.  I did take advantage of the FHA process as a first time buyer, if thats teh only case where thats offered, then it needs to be extended to everyone taking out loans. 

For RJS/Dio, you guys should definitely go with a first time buyer program, or at least review which deal would be best for your situation.   It worked out great for me, i got an extra 8k mortgage with zero interest, the only stipulation is paying a fee if i sell before 5 years in this house.  The fee is around 3k but with equity its no sweat. 

[PoopyfaceMcGee]

so a bunch of irresponsible people and companies basically hold the rest of us ransom.

Doesn't your whole theory of government revolve around the majority of tax-paying citizens paying expenses for the people that can't foot the bill themselves, whether by fault of their own or not?

Yeah, and as I said, if you'd farging read you moron, I suppose it's good that the government is stepping in.  But I'm unfargingpleased with the whole thing.

Now you know how I feel about people suckling off welfare.  I have absolutely no issue with certain programs being in place, but it sure would be damn nice if they could be run more efficiently.

[Diomedes]

I know you don't much mind corporations suckling off public welfare.  On that point we differ strongly.

[PoopyfaceMcGee]

The only problem with declaring "corporations" as evil and blaming them for all the ills of society is that they're the foundation of what's left of the American economy.  If you stick it to the "man" too much, guess who loses?

Not all corporations are created equal, just like poor people.

[phillymic2000]

We just bought a forclosure near my new job and it was an absolute steal. I understand that the rates on arms and what not were a great deal but what moron could not see that the market moves up and down. A two year arm is not much assurance that you are safe at that rate. the family that bought this place paid over 50k more then we got the house for and it appraised out at 40k more then what we paid, which enabled us to get a really good rate. I just am stunned that corproations did not see this coming, our lender 5 years ago wanted us to go with the 30 rate at 5.2% instead of the arm, it worked out. I am also stunned at the way the people left the house, nothing major structual wrong, but dirty as hell, it took me over three days to clean it and have it good for the family to move in. It's like they lived like animals, fargin shame. I do not know if I am too happy with uncle sam stepping in, hell when we got in some credit card debt years ago nobody helped us out, we had to budget and work hard to pay it down for a couple of years. It kind of pisses me off that irresponsible people (and yes cmpanies too) get a break cause they made a bad decision, and cry out for uncle sam, but then bag on the system and  take advantage of it. I guess I'll just keep on working hard casue million of people are depending on people like me. fargin bastiches

[Cerevant]

Why do the borrowers buy this shtein?  Because everyone wants to believe that they are getting a deal too good to be true.  Listen to Sirius NFL radio sometime: every 3rd ad is for a get rich quick scheme.  Don't believe me? 

The fee is around 3k but with equity its no sweat. 

Well, Seabiscuit, that is what the lenders told those idiots buying on baloon mortgages: "Look how fast property values are going up!  Buy now, get a few years of equity, sell for a huge profit, and you will have enough for a down payment on a mortgage you can afford!  Move fast!  Time is running out!"

So, what happens in 5 years when your house is worth 20% less than what you paid for it because the bubble burst?

The government didn't bail out the dot coms, and a lot of people had their pensions and 401k's tank when the bubble burst.  Yes, this is worse, but it is driven by the same get rich quick mentality.  Property values are being driven up because the sellers *need* the property values to go up, not because they are worth more.  If this isn't fixed, and fixed quick, you will be buying your lunches with Euros.

[MadMarchHare]

We just bought a forclosure near my new job and it was an absolute steal. I understand that the rates on arms and what not were a great deal but what moron could not see that the market moves up and down. A two year arm is not much assurance that you are safe at that rate. the family that bought this place paid over 50k more then we got the house for and it appraised out at 40k more then what we paid, which enabled us to get a really good rate. I just am stunned that corproations did not see this coming, our lender 5 years ago wanted us to go with the 30 rate at 5.2% instead of the arm, it worked out. I am also stunned at the way the people left the house, nothing major structual wrong, but dirty as hell, it took me over three days to clean it and have it good for the family to move in. It's like they lived like animals, fargin shame. I do not know if I am too happy with uncle sam stepping in, hell when we got in some credit card debt years ago nobody helped us out, we had to budget and work hard to pay it down for a couple of years. It kind of pisses me off that irresponsible people (and yes cmpanies too) get a break cause they made a bad decision, and cry out for uncle sam, but then bag on the system and  take advantage of it. I guess I'll just keep on working hard casue million of people are depending on people like me. fargin bastiches

They didn't make a mistake.  They knew full well that, if houses stayed high, they could always sell the foreclosures for a profit, and if not, well, the gov't would be forced to bail them all out.  Either way they get rich.  Scumbags.

[phillymic2000]

Well maybe, but not in our case the outstanding balance due on the house was 35k more then our first offer, which they took with the quickness. I know we could have lowballed even more and they might of took it, but what are you gonna do.

[Butchers Bill]

If you haven't already, start stuffing cash in a mattress or something.  Keep an eye on the news over the next few weeks...this is just the beginning.

Homes...bad

Stocks...bad

Countrywide about to go under...not good even though they suck

Also look for Bear Stearns and Merrill Lynch, two stalwarts of American finance to be bought out by foreign entities sometime in 2008.


PS...the dollar will continue its slide.  Instead of Dollars, try some Euro or Brazilian Reals in your mattress instead.

[Cerevant]

What boggles my mind is coming back to the states and finding the place being overrun with Canadian Banks!

TD?  Toronto Dominion.  I'm seeing those all over the Philly area.
RBC Centura?  Royal Bank of Canada.  Big in the south, the Hurricanes play in the RBC Centura center (centre?)

If the economy up here wasn't so dependent upon exports, the loonie might be a good investment.  The USD would be even lower against the CAD if they didn't keep mucking with things to keep the dollar at parity.